Based on the latest data released by manufacturers as reported by cvworld.cn, a total of 49,500 heavy-duty trucks were sold in August, surging 45 percent from a year earlier in what is usually a slack sales season. This increase marked the highest monthly growth yet in 2016.
Record monthly increase in 2016
Compared with past data, the 49,500 units sold and 45 percent growth rate achieved have several positive significances:
First, the 45 percent increase reflects a record monthly growth so far this year. Despite a drop of 8 percent in January 2016, sales growth of heavy-duty trucks turned positive in February, going up 27 percent and remained so ever since. Growths in March, April, May, June and July reached 10, 17, 25, 18 and 34 percent respectively.
Second, August sales of 49,500 units were the first time that monthly sales in 2016 exceeded the same month of 2014. Compared with previous two years, although monthly sales in each month from February to July exceeded the respective number of 2015, they did not reach the 2014 levels. This August, sales hit the highest level among the recent three Augusts, which reflects the fact that the entire sector has been on a rapid recovery and indicates a promising market in the traditional peak selling season of the so-called “Golden September Silver October” period as well as Q4.
Mainstream heavy-duty truck manufacturers all posted positive performances in August. FAW Jiefang remained No. 1 with sales of 9,600 heavy-duty trucks, soaring 67 percent from the previous year. Dongfeng was the runner up by selling 9,300 units, jumping 37 percent. CNHTC took third place with sales of 8,500 units, up 34 percent. Shaanxi Auto and Foton followed with sales of 7,000 and 5,800 units, respectively up 31 and 34 percent.
JAC and Dayun seized the 6th and 7th spots by selling 3,100 and 1,706 units, up 77 and 40 percent respectively. SAIC-IVECO-Hongyan sales nearly doubled (up 94 percent) to 1,007 units, while CAMC Hualing and Beiben each sold 1,120 and 600 units, up 84 and 19 percent, respectively.
The outstanding performance in August was due to the low base of August 2015, which was the lowest selling August since 2007. It was also due to the purchase shift toward new tractors. In addition, corporatization of road logistics is gaining pace, which to a large extent drove the shift from mid- to low-end tractors of small horsepower to mid- to high-end tractors of large horsepower (especially over 400 hp).
Furthermore, the Action Plan of Controlling Oversize and Overloading for Highway Trucks released by the Ministry of Transport and Ministry of Public Security on August 18 just came into effect and its positive incentive effect on the market remains to be seen.
Heavy-duty truck sales up 20 percent through to August
Thanks to the impressive market performance in August, sales in the first eight months of 2016 amounted to 439,500 units, surging 20 percent on a yearly basis with a net addition of 72,600 units.
FAW Jiefang maintained in the No. 1 position for the eight consecutive months with sales of 90,700 units, expanding 68 percent from a year earlier with a market share of over 20 percent. Dongfeng remained closely behind with sales of 83,700 units, up 4 percent with a market share of 19 percent. CNHTC sales rose 10 percent to 73,900 units, taking up 16.8 percent of market share. Shaanxi Auto and Foton maintained their 4th and 5th positions, posting respective sales of 62,200 and 50,700 units, up 18 and 5 percent with market shares of 14.1 and 11.5 percent each.
JAC sales added up to 27,500 units, expanding 32 percent with a market share of 6.3 percent. Dayun sold 12,771 units, up 30 percent with a market share of 2.9 percent. SAIC-IVECO-Hongyan sales jumped 67 percent (second to FAW Jiefang) to 6,073 units with a market share of 2.3 percent. CAMC Hualing and Beiben sales remained in negative growth territory, down by 14 and 5 percent respectively to 8,687 and 6,169 units.
In general, the market pattern in the first eight months did not differ greatly with the general competitive landscape of mainstream heavy-duty truck manufacturers in H1.
(Rewritten by Xu Jun based on author’s article on cvworld.cn)